TURKISH TAX SYSTEM
IN GENERAL
The Turkish tax regime is an important part of the economy and can be divided into three main categories:
- Income Taxes, such as Income Tax Individuals and Income Tax on Corporates
- Taxes on Expenditure, such as Value Added Tax or Banking and Insurance Transaction Tax or Stamp Tax
- Taxes on Wealth, such as Property Tax or Inheritance and Gift Tax
A. INCOME TAX
1. Income Tax on Individuals
An individual is subject to the income tax on his/her income and earnings. The rules of taxation for individual income and earnings are provided in the Income Tax Law 1960 (ITL).
Taxable Income
Turkey has a unitary tax system under which income derived from different sources is